Faculty of Commerce, Law and Management (ETDs)

Permanent URI for this communityhttps://hdl.handle.net/10539/37778

Browse

Filters

2022 - 20242

Settings

Has files: YesSubject: search.filters.subject.Financial innovation

Search Results

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    The effects of coronavirus on SMEs business performance, technology adaptation, financial innovation, and sustainability
    (University of the Witwatersrand, Johannesburg, 2024) Kolobe, Benjamin; Maisela, Sikhumbuzo
    Businesses have been severely impacted by the COVID-19 pandemic, which has resulted in significant economic hardship. An analysis of COVID-19's impact on Small Medium Sized enterprises (SMEs) shows that these businesses' and their employees' financial outcomes are probably going to get worse before getting better. The main issue is that small and medium-sized business owners have restricted access to capital and innovative strategies, which has made it challenging for them to deal with the tight constraints. As a result, many SMEs have had to adopt innovative financial and technological strategies to promote sustainability and prevent closure (Puddister & Small, 2020). This study examines the impact on business performance, technology adaptation, financial innovation, sustainability, and lockdown restrictions of SMEs during the pandemic. An online questionnaire with 30 closed-ended questions was administered to entrepreneurs in the retail sector across Gauteng. The following inquiries are addressed in the study: What impact has the coronavirus had on SMEs' ability to do business? How has technology adoption improved small and medium- sized enterprises' performance during the coronavirus lockdowns? Is there a chance that financial innovation may sustain SMEs throughout the pandemic? Has the coronavirus epidemic affected SMEs' ability to survive? Using non-parametric tests, the researcher examined the correlations between the independent and dependent variables for each of the four hypotheses using IBM SPSS. The associations between the variables were examined using inferential statistics such as Spearman's rho correlation function, multinominal logistic regression, generalized linear model, and ordinal linear regression. All four of the hypothesis' correlations were determined to be significant. This study suggests that fostering financial inclusion, promoting technology adoption through training and grants, and encouraging innovative financial approaches can empower SMEs to navigate pandemic challenges and build resilience. Proactive policy interventions and support systems tailored to SMEs are crucial to mitigating the pandemic's economic consequences and promoting long-term sustainability
  • Thumbnail Image
    Item
    Innovative banking, the unbanked and domestic savings in South Africa
    (University of the Witwatersrand, Johannesburg, 2022-07) Umar, Safiya; Mzyec, Mjumo
    This study explores financial literacy and domestic savings and their impact on the economy, with reference to the unbanked low-income group in South Africa. Innovative and “smart” banking may be the ultimate tool that will serve the bottom of the pyramid and grant exposure to financial credit and means of saving. As almost two billion people in emerging markets are unbanked, the establishment of digital financial services is more about forming markets for future customers than about changing current bank–client relations. The greatest challenge affecting the poor around the world is their inability to adequately participate in the economy because of the challenge of being unbanked, which causes low-income groups to be excluded from mainstream financial activities. Poor communities encounter various obstacles when it comes to banking, including the distance to bank outlets, the prevailing risk of carrying cash, lack of trust, paperwork and identity and document requirements. Financial innovation is important in addressing the two key challenges that financial intermediation faces in Africa, namely high risk and high cost of financial services. The research underpinning the theoretical framework is drawn from the Base of the Pyramid market (BoP). The intention is to encourage an inclusive approach in the adoption of technology in the financial services sector, which is envisioned to create shared value socially, environmentally, and commercially. Studies have demonstrated that combating poverty and financial exclusion requires implementation of commercially viable technological innovations to address needs of the low-income market. Key related concepts are innovation in banking, the unbanked and domestic savings. The population under study is financial services professionals in the South African retail banking industry, mainly from Capitec Bank, as this study was inspired by Capitec Bank’s unique business model as one of the first banks in South Africa to focus on serving the bottom- of-the-pyramid client base. This research report adopts a qualitative research method. The research instrument includes key questions that were asked during semi-structured interviews. The findings of the study highlight the importance of constant enhancements of new technologies in the banking industry to address the matter of inclusion of lower-income groups in the economy by ensuring that banking is made accessible and convenient. The premise of innovation in banking is to benefit society and grow the economy in a manner that is useful for generations to come. Mobile banking has been identified as a key instrument in driving bankingto unserved areas in the most cost-effective way